Parents And Students Face Setback As HELB Halts Loans And Bursaries

Parents and students are facing a setback as the Higher Education Loans Board (HELB) has announced that it will not issue loans or bursaries until the court makes a decision on the new funding model for universities and colleges.

This decision follows a court order to suspend the model, which has been deemed unconstitutional and has caused confusion among higher education institutions.

Justice Chacha Mwita ordered the Ministry of Education to stop the Variable Scholarships and Loan Funding (VSLF) model until the case is heard.

The hearing is scheduled for December 6.

“Following the court order issued on October 3, 2024, by Hon. Justice E.C. Mwita regarding the New Funding Model, we want to inform all stakeholders that HELB is fully complying with the order. We are also working closely with the Ministry of Education to explore all urgent legal options for a resolution,” HELB stated in a press release.

The new funding model was introduced based on recommendations from the Presidential Working Party on Education Reform.

Under this model, students are classified as vulnerable, extremely needy, needy, or less needy. Vulnerable students receive 82% of their funding as scholarships and 18% as loans, while less needy students receive 38% as scholarships, 55% as loans, and 7% to be contributed by parents or guardians.